Cisco Systems plans to lay off about 7 percent of its global workforce in a restructuring that will see it further focus on hot IT areas such as the internet of things, security, collaboration, next-generation data centers, and the cloud.

The move will cost the company around $700 million in redundancy payments to the roughly 5,500 staff who will be out of jobs in the coming months. The layoffs will hit some of Cisco's smaller and more mature business areas where long-term growth prospects are low, the company said.

"We expect to reinvest substantially all of the cost savings from these actions back into these businesses and will continue to aggressively invest to focus on our areas of future growth," Cisco said in a statement.